Briefing of the Portfolio Committee Annual Report 2010/11

Sibusiso XabaDirector General: Department

of Arts and Culture

Presentation Outline

1. Purpose of the presentation

2. Mandate and Strategic Orientation

3. Key Highlights

4. Report on Annual Financial Statements

5. Report on Human Resource Management

6. Conclusion

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Purpose of the presentation

• To brief the Portfolio Committee on Arts and Culture on the overall performance of Department during the 2010/11 financial year.

• To provide reasons and explain some of the findings raised by the Auditor-General.

• To solicit the Portfolio Committee’s inputs on the annual report, including the strategic interventions to consider moving forward in order to fulfill the constitutional and legislative mandate of the Department.

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DEPARTMENTAL MANDATE AND STRATEGIC ORIENTATION

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Vision of the Department of Arts and Culture

To develop and preserve South African culture to ensure social cohesion and nation building

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Constitutional Mandate

The mandate of the department is derived from the Constitution of the Republic of South Africa, including the Preamble and Founding Provisions, in particular:

Section 16 (1): Everyone has the right to freedom of expression, which includes:

a) freedom of the press and other media; b) freedom to receive or impart information or ideas; c) freedom of artistic creativity; and d) academic freedom and freedom of scientific research.

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OUTCOMES AGENDA

OUTCOME 12B

•Output 5: Nation Building and National Identity– Campaigns to inform and educate citizens about their Rights

and Responsibilities ito the South African Constitution– Celebrating South Africa’s Cultural Diversity

•Output 6: Citizen Participation– Access to information– Public awareness about participation for active public

participation– Institutional design to maximise participation

•Output 7: Social Cohesion– Social Capital

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Mission of the Department of Arts and Culture

• Develop and promote arts and culture in South Africa and mainstream its role in social development

• Develop and promote the official languages of South Africa and enhance the linguistic diversity of the country

• Improve economic and other development opportunities for South African arts and culture nationally and globally through mutually beneficial partnerships, thereby ensuring the sustainability of the sector

• Develop and monitor the implementation of policy, legislation and strategic direction for the identification, conservation and promotion of cultural heritage

• Guide, sustain and develop the archival, heraldic and information resources of the nation to empower citizens through full and open access to these resource

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DAC Programmes

1. Corporate Services: Provides overall management and centralised support services to departmental core programmes in order to create

an enabling environment for the achievement of departmental objectives 2. Arts and Culture in Society: Promotion of Arts and Culture in South Africa and mainstream its role in social development

3. National Language Services: To develop and promote the official languages of South Africa and enhance linguistic diversity

4. Cultural Development and International Relations: Improve economic and other development opportunities for South African arts and culture nationally and globally, through mutually beneficial partnerships thereby ensuring sustainability of the sector

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DAC Programmes Cont…

5. Heritage Promotion: Develop and monitor the implementation of policy, legislation and strategic programmes for the identification, conservation and promotion of cultural heritage for socio-economic development and social cohesion

6. National Archives and Library Services: To guide, sustain and develop the archival and library and information resources of South Africa so that good governance is supported, socio-economic development is sustained and citizens are empowered through full and open access to these resources

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KEY HIGHLIGHTS

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Legislative Review• The South Africa Language Bill is being developed in order to comply with

the Constitution which requires the national government to regulate the use of official languages. The draft Bill was developed.

• The South Africa Language Practitioners Council Bill will provide statutory regulations specifying the qualifying criteria for language professionals and practitioners. The Bill and the business case thereon was completed.

• South African Community Library and Information Service Bill – which creates norms and standards on Libraries and promote co-operative governance between the spheres of government, has been developed and is being consulted on.

• Cultural Laws third Amendment Bill – it will enable the Department and statutory institutions to better achieve their strategic objectives. This Bill has to be subjected to further consultation.

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2010 World Cup Highlights

• DAC used the 2010 World Cup platform to showcase South African and African arts, culture and heritage

• 5700 Multilingual Soccer Terminology Booklets were developed, printed and distributed at various entry points – an achievement which proved to be very valuable for the 2010 Soccer World Cup

• Fan Parks were supported by various performing artists • Exhibitions of visual arts and crafts were displayed – i.e. Pace

2010 Exhibition (arts and craft sourced from different parts of Africa)

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2010 World Cup Highlights

• Popularising our National Symbols– Popularising the singing of the National Anthem– A travelling exhibition of all the National Symbols and

National Orders took place at most host cities;– “Fly the Flag Project” - to create the hype around the

World Cup• people were encouraged to display SA flags in their

vehicles, businesses, stadiums, houses, etc.• Municipalities displayed flags of all participating

countries in the streets of hosting cities

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Priority 1: Social Cohesion and Nation Building

• Geographical Name Changes: – Played a role in standardizing geographical names and engage the

citizens of South Africa on issues of geographical names – Name changes were effected in some provinces (i.e. Mpumalanga

and KZN) and some municipalities. 18 names were approved over all

– A discussion document on the national coherent strategy on geographical name change was developed and tabled at TIC

• Festivals– The draft strategy for festivals was developed and presented to

the TIC. Further consultations are underway

• Conferences– Annual National Oral History Conference was held in Mpumalanga.

15 interviews were conducted on families’ lineage 15

Priority 1: Social Cohesion and Nation Building – Cont…

• Interventions that promote dialogue– Social engagement and community mobilisation campaigns on

issues of social cohesion and nation building were conducted in Easter Cape, Western Cape and Mpumalanga

– Key challenge with this intervention was the lack of resources (human and financial) from the provinces to execute dialogues

• National Symbols and National Orders: National symbols and National Orders are promoted as they form the core of the national identity, national building and social cohesion. – 500 000 hand held flags were distributed during the 2010 FIFA

World Cup – Various publications and exhibitions were staged at different venues

such as Benoni Museum, Graaf Reinette Museum, University of Stellenbosch and Shanghai Expo.

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Priority 1: Social Cohesion and Nation Building – Cont…

• National Symbols and National Orders– Flags In Every School Project was an undertaking to ensure that flags are

erected in schools, and that the local communities feel that they are part of the nation. 355 flags erected in schools.

– The National Orders Ceremony was conducted on the 27th April 2010 • Community Arts Centres

– These serve as a vehicle to social cohesion and nation building. At the same time they provide short-term jobs especially in the technical services, hospitality, security, etc.

– Strategy and draft Framework for CAC’s developed, Centre of Excellence could not be developed due to budgetary constraints.

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Priority 2: Skills Development

• National Creative Industries Skills Academy: The Academy will become a “Center of Excellence”, providing a platform for artists to perfect their skills. Concept for the Academy was developed and the situational analysis was conducted.

• SA New Plays Writing Programme was launched by the Minister on the 25th January 2011. – Purpose is the development and promotion of special skills for

writing and to create regular platforms for publishing. – A selection of 20 emerging playwright benefited from workshops

held in Cape Town and Johannesburg.

• Workshops and exhibitions for Fashion Fusion programme was held.

• The Heritage Human Resources Development strategy to promote skills development in the Heritage sector has been completed. 18

Priority 2: Skills Development Cont…

• Provision of Bursaries– 119 postgraduate were awarded bursaries to promote skills

development in the language profession.

• International Cooperation– The DAC engaged international partners to:

• provide platforms and opportunities for young creatives across the various disciplines/sectors

• showcase, network and participate in international events, seminars and conferences

– 2 Treaties and 1 bilateral agreement were signed regionally and internationally

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Priority 3. Economic Development (including International Relations)

• Industry survey by Publishers’ Association of South Africa revealed the following:– SA book sector has R5 billion net turnover per annum– Publishing industry employs 3000 people full time and over 2400

freelancers– More 7000 employed in the printing industry

• A process to reposition arts and culture as a contributor to job creation and economic growth was initiated– Focus on creative industries development and expansion

• Commitment to strengthening the film industry– A further R130 million made available to NFVF to increase

production of local films

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Priority 3. Economic Development (including International Relations)

• DAC facilitates access to international networking platforms – thus facilitates the international recognition and acknowledgements of SA artists, e.g.– William Kentridge received the coveted Kyoto Award for arts and

philosophy in November– Adrian Kohler and Basil Jones received the prestigious Tony Award for

their play “The War Horse”– Xoliswa Sithole won the BAFTA and a Peabody Awards for her

documentary “The Orpans of Nkandla”• Showcasing of the South African arts and culture was also achieved through

the following platforms:– FESPACO in Burkina Faso from 25th February - 6 March.– FESAMN festival of Black Arts in Senegal from 10th - 31 December 20110– SIAO International Craft Festival in Ouagadougou from 29th October - 7th

November 2010– Shanghai 2010 World Expo

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Priority 4: Development, Preservation and Promotion of Arts, Culture and

Heritage• Legacy Projects

– Hosting of the 1860 Commemoration of the arrival of Indian indentured labourers in South Africa

– Commemoration of the 30th year Anniversary of the Matola Raid in Mozambique and the unveiling of the designs for the Monument and the Interpretive Centre

– Completion of the Museum component of Freedom Park and Construction for //hapo completed

– Upgraded and declared as heritage sites the graves of Ma Charlotte Maxeke, Ma Lillian Ngoyi, and Ma Helen Joseph

– Site of Ncome handed over and construction has commenced– Sarah Bartmann Design unveiling and site clearance completed in

August 2010. 22

Priority 4: Development, Preservation and Promotion of Arts, Culture and

Heritage – Cont…• National Liberation Heritage Route (NLHR) - Launched in 2010 -

this is a network of creative sites nationally and within the SADC region and the AU showcasing development of a National and Continental Liberation Route – Routes and places were identified.

• Intangible Cultural Heritage (ICH)– An audit on Intangible Cultural Heritage in South Africa is in

progress - the aim of this initiative is to:• identify the location and status of ICH in SA • develop a register for development and preservation of the ICH

– currently 20% of desktop research and accessing existing databases was done.

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Priority 5: Preservation for Access to Information

• The National Archives– Support and guide records and information management

procedures across government to ensure that the records are permanently preserved in the Archives

– The National Film, Video and Sound Archives hosted the Federation of International Film Archives Congress – the theme was indigenous Film Collections

– National Digitisation Strategy now completed. The policy will:• provide national guidelines on the complex issues of the

digitisation of heritage resources; and • the use of digitisation to improve access to our heritage

collections as learning resources.

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Priority 5: Preservation for Access to Information – Cont…

• Promotion of indigenous languages– Translation and editing of documents into and from all official

languages and foreign languages • 557 documents completed in African languages; • 64 in Afrikaans;• 285 in English; and • 580 in foreign languages.

• The DAC has initiated the establishment of a National Centre for Human Language Technologies that will facilitate the development of HLT applications for African Languages, especially the previously marginalised languages as required by the National Language Policy Framework

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Priority 5: Preservation for Access to Information – Cont…

•Promotion of the culture of reading and writing– Establishment of new community libraries (10) and upgrade

existing ones (56) through the Conditional Grant.– African Women Writers’ Symposium held at the Windybrow

Theatre in August 2010– Established the National Book Week in September

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REPORT ON ANNUAL FINANCIAL STATEMENTS (AFS)

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Programme Performance- Voted funds and Actual expenditure

Appropriation R’000

Main appropriation

R’000

Adjusted appropriation

R’000

Actual expenditureR’000

Over/under expenditure

R’000

1.Administration 154 568 196 036 190 798 5 238

2.Arts and Culture in Society

327 121 482 166 481 940 226

3.National Language Service

93 483 93 604 92 207 1 397

4.Cultural Development and International Co-operation, Investing in Culture

206 708 228 449 187 722 40 727

5.Heritage Promotion 993 943 806 138 716 406 89 732

6.NationalArchives, Records, Libraries and Heraldic Services

630 897 634 852 579 746 55 106

Total 2 406 720 2 441 245 2 248 819 (92%) 192 426(8%)

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Report from the Audit Committee

• Department operated on the approved Strategic plan for 1 April 2010- March 2011

• The Audit Committee and Internal Audit Unit was in place and fully effective and more four( 4) meetings were held in the period under review

• Audit committee operates in accordance with approved and written Terms of Agreement.

• The Audit Committee is satisfied with the quality of the quarterly reports prepared, however noting issues raised by Auditor General.

• The Audit Committee has reviewed and discussed the Annual Financial Statement with Auditor General and Accounting Officer and concur and accepts conclusion thereof.

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Report from the Auditor General

Opinion• Unqualified Audit Report

Attention has been drawn upon the following• Unauthorised Expenditure• Irregular expenditure• Fruitless Expenditure• Unaudited supplementary schedules.• Underspending of the allocated budget.• Presentation of the reported performance information

(predetermined objectives).

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• The department incurred unauthorised expenditure of R41,769,000 due to funds expended for purposes which were not in accordance with the vote.

Relates to shifting of Earmarked funds from 2010 FIFA World Cup budget = R25,677,298

and = R16,091,505

during 2008/9 financial year.

Unauthorized expenditure

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Irregular expenditure

• The department incurred irregular expenditure of R64,047,000 as the expenditure incurred related to previous years.

• An investigation conducted by the Special Investigation Unit representing the bulk of this irregular expenditure has not been finalized as yet.

Irregular expenditure

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It relates to:• Vat verification was not done in the 2008/9 financial

year which amounts to R200,000.• Employees remunerated without employment

contracts amounts to R376,000.• Establishment of SPE at Down Town Studio Music

Hub in 2009/10 financial year amounts to R3,000,000

Irregular expenditure (cont..)Irregular expenditure (cont…)

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• A proper tender process was not followed and payments were not approved in line with the approved delegation of authority in 2007/8 financial year (African Access) = R54,503,000.

• Amount appropriated for capital expenditure was utilized to defray current expenditure in 2008/9 financial year = R5,900,000.

Irregular expenditure (cont…)

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• The department incurred fruitless and wasteful expenditure of R743,000 relating to the 2008/09 financial year.

• An investigation conducted by the Special Investigation Unit of this fruitless and wasteful expenditure has not been finalized as yet.

Fruitless and wasteful expenditure

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REPORT ON HUMAN RESOURCE MANAGEMENT

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HR Information

Type of Termination NumberDeath 1Resignation 16Expiry of contract 6Transfers out 1

Discharge due to ill-health 1Discharge due to misconduct 15Retirement 6

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HR Information (cont’d)

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Conclusion

Achievements•The Department performed reasonably well considering the challenges experienced in 2010/11. •92% of the budget was spent •Unqualified audit

Challenges•Reporting on predetermined objectives•Issues of concern raised by the AG•High vacancy rate•Under-expenditure on some projects

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Thank you

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